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17th of May 2012

New PCC attracts 15 potential UK clients

Vicky Beckett 12/10/2011

Fifteen of the UK’s largest housing associations are doing modelling analysis and seriously considering joining a new PCC.
 
The new Guernsey-based property protected cell company (PCC), set up by the broker Acumus, has received a large amount of interest since Affinity Sutton, Gallion Housing Association and RCT Homes took cells in the company.
 
Huw Thomas, Acumus CEO, expects to see four or five of London’s largest housing associations join the PCC, in the next six to nine months.
 
Acumus established Igloo insurance, in June 2011, to help the associations avoid market volatility and to lower risk management costs by writing property stock and property liability.
 
However, Thomas,  Acumus CEO, said a couple of large housing groups have already requested to put whole programs in, so he is talking to insurers and reinsurers about putting other classes in Igloo.
 
Thomas said: “We will definitely migrate to that, probably sooner than anticipated, given the expressions of the housing associations we are talking to so we will end up with quite a large element of the program in cells in the future.”
 
Igloo is the only PCC in the UK housing association sector, and while a few UK associations have other forms of self-insurance, Thomas said this is not very common.
 
“Some of the larger associations have relatively small deductible programs that have a £5,000 to £10,000 pound excess for the property risk, for example, very few of them have anything much larger than that.”
 
Groups of housing associations were looking at similar ideas for some years, including Tony Cotter from Gallion Housing Association.  
 
Cotter previously considered an American mutual captive for small associations, but was more attracted to Igloo’s PCC structure which is ring fenced for different company’s risks.
 
These housing associations in the UK are generally not-for-profit organisations that provide homes for those with low income.
 
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